Janice plans to save $80 a month, starting today, for 20 years.Kate plans to save $80 a month for 20 years, starting one month from today.Both Janice and Kate expect to earn an average return of 5.5 percent on their savings.At the end of the 20 years, Janice will have approximately _____ more than Janice.

Question

Quizplus · Accepted Answer

Janice starts saving one month earlier than Kate, so her first $80 deposit earns interest for an additional month compared to Kate's savings. This extra interest results in Janice having approximately $159.73 more than Kate at the end of 20 years.

Janice Plans to Save $80 a Month, Starting Today, for 20